Playing it safe: Women, advertising and financial services

Summary report May 2016

The context

Women are increasingly in control of household finances

1 in 3women admit that if they were

separated from their partner they would need help to get up to speed

with their personal finances

Between 1998 and 2013, the number of working mothers who are the main breadwinner rose by

But many women feel less confident when it comes to finances

Research suggests that a majority of women of all ages

will be in charge of every household financial decision

by 2020

80%And now one in five women in the UK are the main breadwinner

Fewer women than men feel

confident making investment decisions

53% 38%

Women are increasingly holding and earning more money

The  Centre  for  Economics  and  Business  Research  (CEBR)  thinks  female  millionaires  will  outnumber  male  ones  by  2020,  and  by  2025  women  will  control  60%  of  the  

nation's  private  wealth.

The number of women

earning £1m+ a year is growing

three times faster than the number of men

Fewer women than men own a stocks and shares ISA

But they are not yet realising the full potential of this wealth

17% 10%Women’s outcomes at retirement remain poorer than men’s – even when gender pay gap issues are accounted for

Our experts felt that the industry has not reflected the change in women’s roles yet

…the rise of the professional, independent, high net worth woman has only really come about in the last 35 years, which compared to how long financial services has been around is a drop in the ocean

Economist

[FS Companies] are still talking to women like they’re a little bit irrelevant.

Consumer champion

Women’s role in society is changing…

…but financial services remains constant in its

approach

Products are unisex… …but ways of talking and visualising them often aren’t

…the more you go into the bank, the more detailed and complicated the products get…the more older men are in charge of those products

Economist

Women are increasingly making decisions about

financial products…

…but industry is dominated by (older) men

How differently do women and men feel about financial services?

The need to feel safe defines women’s approach to financial planning to a much greater extent than men’s• For the women we spoke to, maintaining financial

security was especially important because: • You are providing for the family – and children above all else• You can respond to emergencies quickly 55%

62%

Security

Men Women

When it comes to planning my finances, the most important things to me are:

(n:2084)

You have responsibilities. The key thing for me was what if

something happens tomorrow?

I worry about money and our finances, our future, I take that

stress on

Having kids, getting a mortgage, all these things

made us more responsible. You have more important people

than yourself involvedWhen you have children, it’s vital to plan your money – it’s

their future at stakeIf you don’t there are

implications, charges, you lose money, you’ve got to be savvy

about it

While men are significantly more likely to choose elements that relate to ‘making money’ as important in their financial planning

• Which women rejected and criticised as a less than sensible approach…

24% 24% 24%

18%16% 15%

Growth Returns Profit

Men Women

When it comes to planning my finances, the most important things to me are:

(n:2084)

There’s more of an understanding with women, you

have to wait for things patiently, I always save through the year. My husband just says

‘let’s get a loan’

Men are more inclined to short-term gain over long term profit and sensibility

I was taught very early on ‘look

after the pennies and the pounds will look after themselves’

They [men] don’t think of the risks

And when women think about financial services, confusion and worry is top of mind in an alien world

Not very accessible to the everyday person, not just women, the

everyday worker

Unwelcoming, patronising, full of jargon

I’d like things to be simpler, if things weren’t allowed to be so

variable…jumping through hoops, that’s what it feels like

Their response is to develop a set of techniques to help them to take back control

Embedding money management

practices in their day to day lives

Controlling as much as they can in their

own household

They take great pride in their role

and contrast it with their friends’ or

partner’s approach

Money management becomes a significant part of their lives –every day, multiple times a day

I manage my money in my sleep. I wake up early, 2 o clock in the morning, the first thing I do, pick

up my mobile, make sure the money’s there

Because I use my banking apps, it’s

essential. I’m literally standing on

the school run making payments to

people

I think this [card reader] is my life now when it comes to finances…I actually have one of these

in every single bag.

• Spending a lot of time managing their money

• Checking accounts almost addictively

• Thinking about £££ 24/7

• Therefore highly reliant on remote banking

• Keeping card readers in multiple places

It consumes me, it’s part of me, keeping up my own finances is something I think of multiple times a

day

They extend their control to the household to ensure that the family as a unit is on track• Often taking the

lead on joint accounts

• And being responsible – often solely - for larger household decisions

• Monitoring budgeting for for big expenses like family holidays

I’ve always managed my money. I’m very bossy, we’ve got our joint account, we’ve got our separate accounts…I’m just better at it

It is a lot of responsibility, sometimes I just

wish I could switch it off [dealing with finances] just for

one day

The way I manage finances, I make sure all the bills are paid, the savings are dealt with and

have a little bit extra to have a treat.

Because I know exactly what’s coming in and going out, I manage

everything. He doesn’t like to admit it, but it

works

And they are highly emotionally invested in the roles they have created – feeling pride in the precision it requires• They view their role as

driven by a need for discipline and precision –and are proud that they do it well• Being in charge of the

money is a point of pride• Often contrasted with

their partners’ more laissez faire approach

• Or keeping up with their friends

It’s being really stringent that money is in the right place, being

disciplined

Women have upped their game. I still do more with the kids and I’m the breadwinner, and I do more round the house and I deal with the money

My friends and I are quite competitive about our finances,

being savvy

Do you think our partners are like that

because they know that someone else is

taking care of it?

In my mind here’s a checklist, of what’s gone out, what’s gone in…I’m being organised, every

single day

Women’s financial approaches in case-study

Sometimes it’s difficult for me to ‘leave the office’, I can be on holiday and still

do it

• Work can be very intense and demanding and finances require constant monitoring

• Relies on apps • Is the lead for financial

planning for holidays and home improvements but relies on her partner to initiate investment conversations

If you don’t keep up, there are implications…you have

to keep control

• Prides herself on being financially savvy

• Feels she is the only one in her family who really knows what’s going on with their finances

• Manages both her and her husband’s accounts

• Despite high level of control does not invest

When you have children. I need to provide properly

and be organised

• When it comes to managing her money, Liz lives by her spread sheet

• Planning for the future financially is really important because that is the kids’ future

• She sets funds aside well in advance for special things like holidays and birthdays

How do women think about investing (in a world where they are striving for control?)

Women generally feel less confident about investing than men do – seeing it as an unnecessary gamble

• Investing is:• Risky, a gamble• Short term, quick wins• For ‘spare’ cash• Full of confusing language – tracker funds,

percentages, FTSE?

-8%

13%

NET: Agree

NET: Disagree

I think I am less knowledgeable than other people when it comes to investing my money

[Investing] would be too risky for me

I suppose we are more risk averse

Men are more inclined towards the

short term gain over long term

profit and sensibility…There’s

more risk in the short term gain

When you look at trading stocks etc, it’s a male orientated

industry. So when it comes to investing, men know a bit more

than the average women

What is a dividend?!!

We’re meant to be financial queens but I don’t know

Not one of the women in our workshop of highly financially engaged and confident women knew what a dividend was

Instead they count on ‘safer’ options: long term, tangible, easy to understand, sensible…

I’ve invested in property,but I didn’t look at it as an

investment. It was something for the kid’s

future

Save as much tax free as you can, take it out, move it to the next place, you got to be savvy about it

I have no faith in pensions at all, the time where you used to pay into a pension scheme and it’s secure and

guaranteed is gone

PROPERTYTheir ownBuy to let

SAVINGSCash ISAsPremium bondsInstant access

PENSIONSWorkplacePersonal

• Tangible asset• Feels long term - can

pass on to children• Have experienced

inheriting property• It’s the ‘done’ thing

• Understood and simple• Secure – can’t lose• Accessible and can be

repurposed in an emergency

• Sensible to have one –even if you don’t trust them

In fact investing is for someone else

• The stereotype investor is not them, instead they are

Men buzz off that, that’s the reason it’s always been a male dominated industry, men are egotistical, it’s all

about the win

I associate investment with wealthy people so it’s hard

for me to relate to. Investment is out of my

reach

Most of my friends are in banking, most of them are

male, when it comes to finances, it’s down to them

But many would like to know more

Often feeling that investing was something they ought to be looking at…

• …but that their current financial set up meant it was not viable at this point in time (because investing is for very rich people)

• …or that they didn’t have the time (because investing is complicated and requires dedication)

I just don’t know a lot about investing; I’m not really very knowledgeable but

feel I should know more?

I wouldn’t mind knowing a bit more about it. It’s been opened up to a wider

audience

Yeah, if I had some spare money, I’d like to know how to invest it properly

Yes! I do want to master the game! But should it be a game?

The biggest gap is the lack of a ‘trusted voice’ that they could turn to for help to navigate these uncharted waters

So much to do already it’s hard to keep up – can I add

another thing?

So much information –what’s the right

information?

I know I might need advice, but how do I find an

adviser?

I’m like a dry sponge. I’m ready to take in the information. I start mopping up and then I

think that’s not right and I start squeezing it out. I want to be able to absorb the right kind

of information that I can trust

Not really then knowing, makes me feel distrusting, not wanting to invest in that. I prefer to buy in independent research or

advice…but then that becomes very daunting

Martin’s money tips, I get through email, the message I feel is: ‘it’s up to you, all you

have to do is keep track of interest rates, keep up to speed’ – this makes me feel slack,

I’d like things to be simpler

Communications about investing often reinforce the sense that it’s risky and for someone else with both language and imagery

Investment typically described by:• Returns• Profit• Percentages / anticipated

growth• Risk warnings• And describe it as a game

I assume investing is risky and a gamble…

Investing is typically illustrated with:• Men• Lots of technology• In ‘rich’ settings• Posh, historic settings• Traditional corporate

I assume investing is for older, wealthier men…

An example in practice

I don’t understand…why hunters so literally?

Looks like it’s aimed at older men

Looks like you would have to have a substantial

amount to invest

Snap reaction from the room:

Profit hunters – already aligned with the wrong priority

‘No boundaries’ – confirms fears over being risky, out of control

Image shows men – engaged in a hyper-masculine, risk filled game – ‘big game hunting’

Brand is unknown and name is alienating

Style and focus of images speaks to a colonial past

This is targeted to everyone

Looks quite simple, easy to understand

This could be me and my husband, although we’d be on the couch

at my house

An example in practice

Snap reaction from the room:

Couple working together to make the decisions (albeit slightly patronising as if man is helping woman)

Language points to simplicity –not risk or need to be an

‘expert’Set in a home – not the city

How can the industry engage better with women?

Five rules for engaging with women

12345

Respond to women’s need for security with tangible account of what happens to their £££

Recognise their need to have control as far as possible

Make it clear that the outcome is more than just profit: This is preparing for the future

Choose words and images with care – investment is sensible, not a risky game

Celebrate the role that women themselves take great pride in

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Questions…